(Bloomberg) — Spain has approved an extension of the powers that allow the government to block foreign investors from taking strategic companies over.
The cabinet agreed to extend the measure until Dec. 31, 2026, the government said in a statement. The powers, which expired last week, target non-European investors and aim to protect “certain strategic sectors against possible security risks”, it said.
The government first took on these powers during the pandemic, amid concerns that foreign investors would swoop in to buy Spanish firms that had seen their valuations plummet.
They have allowed Prime Minister Pedro Sanchez and his ministers to block takeovers, such as a bid for train maker Talgo SA by Hungary’s Ganz-Mavag Europe Zrt.
The government also used the mechanism to oversee Saudi Telecom Co.’s move to increase its stake in Telefonica SA.
The extension also comes amid Sanchez’s moves to shut foreign buyers out of Spain’s property market. Earlier this month, he said Spain will tax non-European Union citizens who live outside the EU 100% when acquiring houses in the country.
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